Outpatient Substance-Abuse Residents Claim They're Rent Stabilized

LVT Number: #24622

Landlord leased a section of its SRO hotel to a counseling center that operated an outpatient substance-abuse program. The counseling center, in turn, rented 89 rooms to participants under transitional residency agreements. The residents were allowed to stay only six to nine months, and had to follow house rules and attend a substance-abuse treatment program. Residents claimed that landlord and the counseling center created illusory tenancies, and that both profited.

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